Guysuco loses $$millions due to recent strike

Last Updated on Tuesday, 3 November 2015, 20:53 by GxMedia

The Guyana Sugar Corporation Tuesday said a recent three-day strike has cost the ailing entity GUY$38 million because unprocessed canes have deteriorated.

Guysuco also said in a statement that as a result of the strike from October 25 to 27, 2015 it has suffered a delay in producing 6,000 tons of sugar which would have earned the corporation GUY$450 million.

According to a statement, the GUY$38 million loss was as a result of the inability of the Corporation to produce 450 tons of sugar due to the strike.

The corporation said Chief Executive Officer, Errol Hanoman, however, said the opportunity still exists for the union members to earn tax free incentives over the remaining six to seven weeks of the crop.

Hanoman told representatives of the Guyana Agricultural and General Workers Union (GAWU) and the National Association of Agricultural, Commercial and Industrial Employees (NAACIE)  about the impact of the strike.

“He indicated that some estates are still feeling the effects of that strike as a result of the staling of canes and the breaking of the production momentum that was generated over the past few weeks,” said Guysuco in its statement.

Hanoman appealed to NAACIE and its members for their patience as Guysuco awaits the basis to guide the negotiation process.  “He indicated that there will be negotiations with the Union but asked that they be patient as the road map to secure the future of the industry is being developed,” said the corporation.

Guysuco denied that claims by the unions that it has violated the Trade Union Recognition and Certification Act that guarantees the right to collective bargaining.

GAWU wants Guysuco to begin overdue negotiations for a nine percent increase in wages and salaries for 2015.

However, the sugar corporation says it cannot begin those talks unless the Guyana government- the lone shareholder in Guysuco- meets and deliberates on the findings and recommendations about the state and future of the cash-strapped, low-producing entity.